Value chain management (VCM) is more than a theory. It is a strategic business approach that is helping a growing number of businesses increase their long-term competitiveness. It would be extremely difficult to achieve such competitiveness by operating as an individual business within fragmented value chain. The primary purpose of this research is to address procurement and value chain impact on organizational performance. The project provides an informed, objective perspective on VCM by demonstrating how value chains and procurement operate at the business level rather than the sector or sub-sector level.
Major changes are currently taking place within procurement functions of manufacturing firms. Procurement is shifting its focus from daily purchasing activities to long term, value-adding procurement and supply chain activities. At the same time, it is responding to the challenges and opportunities of electronic procurement (e- procurement), which refers to the utilization of the internet to buy and sell products and services. The responsibilities of procurement have changed over the last few decades, procurement focused heavily on the transactional elements of the purchasing process. Procurement was accepted as a support function that provides for the sourcing needs of other departments within the organisation
Table of Contents
BACKGROUND OF THE STUDY
LITERATURE REVIEW
Overview of Public Procurement
Procurement Cycle in Ghana
MEASURING PROCUREMENT EFFECTIVENESS
Effect on organization’s performance
VALUE CHAIN
Role and importance of procurement
Purchasing and Procurement
Direct and Indirect procurement
MATERIALS MANAGEMENT
LOGISTICS MANAGEMENT
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN STRATEGIES
Supply chain integration
Agile supply chain
Procurement process, efficiency, effectiveness and performance
RESEARCH METHODOLOGY
Secondary data
Data from Primary Sources
Research design.
Survey population
Sample size and sampling procedure
Qualitative Research
Tools for analyzing the data
PRESENTATION AND ANALYSIS OF DATA
RANSPARENCY IN PROCUREMENT
Availability of Written Records of Procurement
Access to Procurement Information
Tender Invitation and Opening
CAUSES OF DELAYS IN PROCUREMENT
Preparation of Procurement Plan and Duration
The Procurement Act as a Cause of Delay in Public Procurement
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
Research Objectives and Themes
This study investigates the role of procurement and value chain management in enhancing organizational performance, specifically within the Electricity Company of Ghana Limited. The research seeks to assess how procurement functions influence strategic competitiveness and whether current legislative frameworks support or hinder operational efficiency.
- Strategic alignment of procurement with organizational goals.
- Evaluation of procurement effectiveness and its impact on corporate performance.
- Role of value chain management in operational efficiency.
- Challenges within the public procurement process and regulatory compliance.
- Analysis of procurement cycles and their impact on project timelines.
Excerpt from the Book
Direct and Indirect procurement
Most purchasers and industrial marketing researchers support the notion that organizational buying activities vary according to the type of product bought.
According to Chaffey (2004), there are two broad categories of procurement: those that relate to manufacturing of products (production-related procurement) and operating or non-production-related procurement that supports the operations of the whole business and includes office supplies, furniture, information systems, maintenance, repair and operating (MRO) goods and a range of services from catering, buying travel, and professional services such as consulting and training.
According to Weele (2002: P22), purchased materials and services can be grouped into the following categories: • Raw materials; • Supplementary materials; • Semi-manufactured materials; • Components; • Finished products; • Investment goods or capital equipment; • Maintenance, repair and operating materials (MRO items); • Services.
Summary of Chapters
BACKGROUND OF THE STUDY: Outlines the necessity for organizations to increase market share and adopt strategic supply chain management to survive in competitive environments.
LITERATURE REVIEW: Examines theoretical perspectives on procurement, public procurement legislation in Ghana, and the structure of the procurement cycle.
MEASURING PROCUREMENT EFFECTIVENESS: Analyzes the link between procurement activities, cost-saving opportunities, and overall organizational performance.
VALUE CHAIN: Explores the concept of value chains in achieving competitive advantage through cost leadership and differentiation.
MATERIALS MANAGEMENT: Discusses the integration of material flow to reduce costs, lead times, and improve inventory control.
LOGISTICS MANAGEMENT: Details the planning and coordination of physical distribution and information flow from suppliers to customers.
SUPPLY CHAIN MANAGEMENT: Addresses the interconnected network of suppliers and customers, emphasizing strategic integration and customer-focused vision.
SUPPLY CHAIN STRATEGIES: Focuses on the importance of competitive strategies and supply chain integration through collaboration.
Agile supply chain: Defines agility as a business-wide capability to respond rapidly to changing demand in volume and variety.
Procurement process, efficiency, effectiveness and performance: Differentiates between efficiency and effectiveness, highlighting their roles in achieving performance targets.
RESEARCH METHODOLOGY: Describes the descriptive and comparative research design used to gather primary and secondary data at the Electricity Company of Ghana Limited.
PRESENTATION AND ANALYSIS OF DATA: Presents the statistical findings regarding procurement practices, transparency, and timelines.
RANSPARENCY IN PROCUREMENT: Evaluates the accessibility of procurement information and records within the organization.
CAUSES OF DELAYS IN PROCUREMENT: Investigates the impact of procurement planning and the Public Procurement Act on project timelines.
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS: Provides a synthesis of results and suggests policy improvements for better procurement management.
Keywords
Procurement, Value Chain Management, Supply Chain, Organizational Performance, Strategic Sourcing, Public Procurement, Efficiency, Effectiveness, Material Management, Logistics, Competitive Advantage, Procurement Act, Tender, Planning, Ghana.
Frequently Asked Questions
What is the core focus of this research?
This research focuses on the impact of procurement and value chain management on the organizational performance of the Electricity Company of Ghana Limited.
What are the central themes discussed in the study?
The central themes include procurement processes, value chain integration, supply chain strategies, logistics management, and the effectiveness of current public procurement legislation.
What is the primary research question?
The study aims to address how procurement and value chain practices influence organizational performance and whether these tools can be leveraged to achieve effective organizational goals.
Which research methodology was utilized?
The researcher employed a descriptive and comparative research design, using both qualitative and quantitative methods to analyze primary survey data and secondary documents.
What topics are covered in the main body?
The main body covers theoretical frameworks for procurement and supply chain management, the definition and measurement of effectiveness, and an empirical analysis of procurement practices in a real-world organizational setting.
Which keywords define this work?
Key terms include Procurement, Value Chain, Supply Chain Management, Organizational Performance, and Strategic Sourcing.
How does the Procurement Act affect project timelines in Ghana?
The study reveals that both procurement personnel and contractors agree that the current Act often causes delays in the award of contracts due to complex planning and regulatory requirements.
What is the role of 'agile' supply chains?
Agile supply chains are described as capabilities that allow an organization to respond rapidly to unexpected market changes, focusing on flexibility and responsiveness.
What does the study recommend for the Electricity Company of Ghana?
It recommends developing a robust policy framework for the entire procurement cycle, from needs assessment to payment, and increasing transparency to enhance integrity.
- Arbeit zitieren
- Dr. David Ackah (Autor:in), Makafui R. Agboyi (Autor:in), 2014, Procurement & the value chain. A tool for acheiving effective organizational goal, München, GRIN Verlag, https://www.grin.com/document/283898
